Naspers, the global Internet group led and partly owned by South African billionaire Koos Bekker, has shut down the operations of its $100 million South Africa-focused venture capital fund, Naspers Foundry.
The decision was made in the wake of the global reckoning that followed the collapse of Silicon Valley Bank, the second-largest bank failure in U.S. history.
The incident exposed the vulnerability of venture capital and private equity firms to the volatile nature of the tech industry’s financial landscape.
In response to the changing global investment environment, a Naspers spokesperson has stated that both the global and South African investment landscapes have shifted, prompting the company to adapt its strategy accordingly.
The company has reviewed its early-stage investment approach in South Africa and brought it in line with its international strategy.
Moving forward, Naspers will continue to support the growth of the local early-stage tech sector, assessing new opportunities in a manner consistent with its global approach.
Despite concerns raised by venture capitalists regarding the risks associated with “venture debt,” Naspers will maintain its existing investments and provide follow-on funding for its nine portfolio companies, including Planet42, SweepSouth, Naked, Aerobotics, and WhereIsMyTransport.
Shares rise 1.3 percent after Naspers shuts down $100-million venture capital fund
Naspers is a multinational investment holding company based in Cape Town, South Africa, and led by Bekker. Its diverse interests include publishing, online retail, and venture capital investments in the consumer internet sector.
Recently, it was among the investors that helped raise $100 million in debt and equity funding for Planet42, a startup that offers rent-to-own car subscription services.
Despite winding down its $100 million South Africa-focused venture capital fund, Naspers Foundry, the group’s shares on the Johannesburg Stock Exchange rose by 1.32 percent, returning gains to Bekker and other shareholders who have stakes in the company.
Going forward, the group will be aligning its efforts with its international approach through Prosus Ventures, which is now responsible for managing Naspers’ local investments.
As a result, it will no longer have a separate team solely dedicated to supporting South African startups.
